Co-chair update
The Australian Taxation Office (ATO) provided an update on the release of Taxation statistics 2021–22 and International related party dealings statistics 2021–22. Members discussed the statistics related to large business and the potential for a future agenda item on the topic.
Treasury was unable to attend the meeting and their input will be sought on how to provide their standing update.
Membership refresh
A membership refresh is planned for members who have been part of the Large Business Stewardship Group (LBSG) for more than 2 years. Associations will be asked to nominate their own representatives and the ATO will undertake a public expression of interest for LBSG positions held by non-association members, calling for Heads of Tax to indicate their interest in participating in the group.
Advance pricing arrangement program
The ATO gave an update on the implementation of the advance pricing arrangement (APA) program review recommendations since they were published in July 2023. The ATO highlighted its commitment to the program and presented statistics for the past 3 years. The ATO also discussed more recent feedback received in external stakeholder consultation as part of a one-year anniversary check-in following the conclusion of the APA program review and highlighted comparisons with treaty partners.
Members enquired whether the full report of the APA program review will be released. The ATO advised that the report has been published in full and has been available on the ATO website since 1 July 2023, including sanitised examples of case studies.
Members sought further information on the stakeholders included in the most recent consultation process and the resourcing of the APA program. The ATO noted that advisers were approached and advised it will seek to incorporate feedback directly from taxpayers.
Compliance risk and emerging issues
Recent litigation and ATO activity relevant to large market
Decision Impact Statements
The following Decision Impact Statements in relation to recent case outcomes have been published:
- Decision Impact Statement on Minerva Financial Group Pty Ltd v Commissioner of Taxation issued and published on 29 May 2024.
- Decision Impact Statement on Commissioner of Taxation v Hannover Life Re of Australasia Ltd issued and published on 15 May 2024.
Public advice and guidance
- The Commissioner of Taxation published draft Goods and Services Tax Determination GSTD 2024/D1 Goods and services tax: supplies of food of a kind marketed as a prepared meal on 27 March 2024.
- The draft Miscellaneous Taxation Ruling MT 2024/D1: Miscellaneous tax: time limits for claiming an input tax or fuel tax credit will soon be finalised.
- The final determination for draft Taxation Determination TD 2024/D1: Income tax: hybrid mismatch rules – application of certain aspects of the 'liable entity' and 'hybrid payer' definitions is expected to be published in July 2024.
- The ATO has published an update advising of the 3 highest priority thin capitalisation public advice and guidance topics.
Corporate tax transparency update
Each year the ATO is required to publish the income tax information of large public and private companies. Later this year the ATO will publish the 10th report of entity tax information also known as the Corporate tax transparency (CTT) report.
Companies included in the 2023 report include:
- any corporate tax entity that has total income equal to or exceeding $100 million
- entities that have petroleum resource rent tax (PRRT) payable.
This is the first year that data for Australian-owned private entities with total income between $100 million to $200 million will be reported.
Companies that meet the threshold will receive a letter from the ATO in mid-September which will include the details to be published. The ATO will issue communications via the Business bulletins and tax professionals' newsletter prior to the letters being issued.
Members enquired about the timing of the release of the CTT report in addition to the new Research and development (R&D) tax transparency report.
Incorporating local file short form in LCMSF MST (V4)
On 2 May 2024, the ATO advised stakeholders of Local file changes from 1 January 2024. The ATO has published details about the reporting changes, when the reporting changes apply and why the report is changing, see Local file changes from 1 January 2025.
Top 1,000 program
The ATO updated members on the roll-out of the Top 1000 combined assurance program differentiated approach. The ATO has attended speaking engagements at stakeholder events and released a video outlining the changes.
Top 100 program
The ATO provided an update on feedback received following consultation on the Top 100 program review.
ATO Service delivery
The ATO updated members on the improvements being made to improve large business service offerings for key processing items through the Large Service Team (LST) and Bespoke Market Relationship Team. The ATO also provided an update on stakeholder consultation held on certificates of residency.
Members acknowledged the ATO's efforts in improving services for large businesses and raised further issues in relation to the LST phone line, errors when actioning items, clarity around what LST and key client managers are authorised to do and authority levels for Online services for business. The ATO has requested further feedback on the specific issues including areas of priority.
Public advice and guidance consultation update
Following public consultation, the ATO has undertaken targeted consultation with stewardship groups and key stakeholders on the amendments to the thin capitalisation rules. The ATO issued a consultation paper to LBSG members seeking feedback on 3 key public advice and guidance priorities for the new thin capitalisation rules. The ATO is seeking to issue the first of three public advice and guidance products in draft by September 2024.
Board of Taxation
Updates were provided on:
- resetting the direction of the Board of Taxation
- a new external stakeholder engagement approach which will generally be more targeted and involve more specific themes
- recently held sessions on transparency and small business
- new communications which will include a rebranded CEO newsletter that will talk more about the future work program and the Board of Taxation's focus areas.
Members discussed the role of the Board of Taxation and where it can add value, including reviewing tax transparency as a whole.
Integrity declaration
The ATO provided members with the final version of the integrity declaration incorporating changes discussed at the last meeting. The ATO thanked members for their engagement and advised the declaration will need to be signed and returned by the next meeting.
Other Business
The ATO highlighted the standing item of the public advice and guidance update paper that was provided as additional information.
|
Organisation |
Attendee |
|---|---|
|
ATO |
Rebecca Saint (Co-chair), Public Groups |
|
ATO |
Fiona Knight, Public Groups |
|
ATO |
Leila Salem, Public Groups |
|
ATO |
Michael Ingersoll, Public Groups |
|
ATO |
Michelle Sams, Public Groups |
|
ATO |
Nadia Alfonsi, Public Groups |
|
ATO |
Rebecca Irvine, Public Groups |
|
Australian Banking Association |
Darren Norman |
|
Australian Energy Producers |
Michael Fenner |
|
Australian Retirement Trust |
Ian Roberts |
|
BHP Billiton Limited |
Premila Roe |
|
Big 4 Representative |
Alia Lum |
|
Board of Taxation |
Michelle Calder |
|
Business Council of Australia |
Pero Stojanovski |
|
Corporate Tax Association |
Michelle de Niese (Co-Chair) |
|
Group of 100 |
Marc Lewis |
|
Law Council of Australia |
Adrian Varrasso |
|
Property Council of Australia |
Kelly Wong |
|
South32 |
Brian Purdy |
|
The Tax Institute |
Pete Rhodes |
Guest attendees
Guest attendees list
|
Organisation |
Attendee |
|---|---|
|
ATO |
Anthony Siouclis, International, Support and Programs |
|
ATO |
Darryl McCarthy, International, Support and Programs |
|
ATO |
Gregory Dick, Public Groups |
|
ATO |
Julieanne McVey, Tax Counsel Network |
|
ATO |
Megan Croaker, Public Groups |
|
ATO |
Nicole Dykstra, Client Account Services |
|
ATO |
Stephen Dodshon, Public Groups |
|
ATO |
Vy Tran, Public Groups |
Apologies list
|
Organisation |
Member |
|---|---|
|
ATO |
Hector Thompson, International, Support and Programs |
|
Treasury |
Diane Brown |
|
Treasury |
Marty Robinson |
|
BlueScope |
Irene Filippone |
|
Multiplex |
Angela Giunta |